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Is CarMax Inc.(NYSE: KMX), a large market cap stock a smart buy?

With a market cap of has a large market cap size. CarMax Inc. (NYSE: KMX) has been on the stock market since its IPO date on the 2/4/1997. CarMax Inc. is in the Auto Dealerships industry and Services sector. Average volume for CarMax Inc., is 2766.15, and so far today it has a volume of 600551. Performance year to date since the 2/4/1997 is 7.95%.

To help you determine whether CarMax Inc. is undervalued the following values will help you decide. P/E is 19.01 and forward P/E is 16.55. PEG perhaps more useful shows that CarMax Inc. has a value for PEG of 1.33. P/S ratio is 0.73 and the P/B ratio is 3.79. The P/Cash and P/Free cash flow is 212.41 and *TBA respectively.

At the current price CarMax Inc. is trading at, 57.78 (-0.82% today), CarMax Inc. has a dividend yield of *TBA, and this is covered by a payout ratio of 0.00%. Earnings per share (EPS) is 3.06, and this is looking to grow in the next year to 7.64% after growing 11.00% this past year. EPS growth quarter over quarter is 4.50%, and 2.80% for sales growth quarter over quarter.

The number of shares outstanding is 191.77, and the number of shares float is 190.27. The senior management bring insider ownership to 0.60%, and institutional ownership is at *TBA. The float short is 14.58%, with the short ratio at a value of 10.03. Management has seen a return on assets of 4.30%, and also a return on investment of 4.60%.

The ability for CarMax Inc., to deal with debt, means it current ratio is 2.2, and quick ratio is 0.5. Long term debt/equity is 3.54 and total debt/equity is 3.65. In terms of margins, CarMax Inc. has a gross margin of 13.40%, with its operating margin at 6.50%, and CarMax Inc. has a profit margin of 4.00%.

The 52 week high is -12.19%, with 40.07% being its 52 week low. The 20 day simple moving average is 10.68% and the 200 day simple moving average is 11.26%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.


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Stephen Butters

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